Dana Inc (DAN) 2024 Q2 法說會逐字稿

Good morning and welcome. Dana Incorporated's Second Quarter 2024 Financial Webcast and Conference Call. My name is Regina and I will be your conference facilitator. Please be advised that our meeting today, both the speakers’ remarks, and Q&A session will be recorded for replay purposes.(Operator Instructions)

早上好，歡迎光臨。Dana Incorporated 2024 年第二季財務網路廣播與電話會議。我的名字是雷吉娜，我將成為您的會議主持人。請注意，我們今天的會議，演講者的發言以及問答環節都將被錄製以供重播。

At this time, I would like to begin the presentation by turning the call over to Dana's Senior Director of Investor Relations and Corporate Communications, Craig Barber. Please go ahead, Mr. Barber.

現在，我想先將電話轉給德納投資者關係和企業傳播高級總監 Craig Barber。請繼續，巴伯先生。

Good morning. Thank you for joining us today for Dana's second quarter 2024 earnings call. Today's presentation includes forward-looking statements about our expectation for Dana's future performance. Actual results could differ from what we discuss here today.

早安.感謝您今天加入我們參加 Dana 2024 年第二季財報電話會議。今天的演示包含有關我們對德納未來業績預期的前瞻性陳述。實際結果可能與我們今天討論的有所不同。

For more details about the factors that could affect future results, please refer to our safe harbor statement found in our public filings and our reports with the SEC. Before we proceed, I invite you to visit our investor website where you'll find this morning's press release and presentation.

有關可能影響未來結果的因素的更多詳細信息，請參閱我們的公開文件和向 SEC 提交的報告中的安全港聲明。在我們繼續之前，我邀請您訪問我們的投資者網站，您可以在其中找到今天早上的新聞稿和簡報。

As a reminder, today's call is being recorded and the supporting materials are the property of Dana Incorporated. They may not be recorded, copied, or rebroadcast without our consent. On the call this morning, we have Jim Kamsickas, Dana’s Chairman and Chief Executive Officer, and Timothy Kraus, Senior Vice President and Chief Financial Officer.

謹此提醒，今天的電話會議正在錄音，支援資料歸 Dana Incorporated 所有。未經我們同意，不得對其進行錄製、複製或轉播。在今天早上的電話會議上，德納董事長兼首席執行官吉姆·卡姆西卡斯 (Jim Kamsickas) 和高級副總裁兼首席財務官蒂莫西·克勞斯 (Timothy Kraus) 出席了電話會議。

Now to get started, I'll turn the call over to Jim.

現在開始，我將把電話轉給吉姆。

Good morning and thank you for joining us today, please turn with me to page four, where I'll discuss the highlights for the second quarter of 2024. Starting on the left side, I'm pleased to report that Dana achieved sales of $2.7 billion in the second quarter, which is just about in line with the second quarter of last year.

早安，感謝您今天加入我們，請跟我翻到第四頁，我將在其中討論 2024 年第二季的亮點。從左邊開始，我很高興地報告，德納第二季銷售額達到 27 億美元，與去年第二季基本持平。

Adjusted EBITDA for the quarter was $244 million, up over last year, driven by the strength of Dana's core business and end-to-end execution by the global Dana team, who did an outstanding job implementing ongoing efficiency improvements across all aspects of the organization. Their collective efforts have helped to offset the margin impact of inflation and spending on development of EV products, as well as the slower than expected demand in EV and other markets we serve.

本季調整後 EBITDA 為 2.44 億美元，較去年有所成長，這得益於德納核心業務的實力以及全球德納團隊的端到端執行力，該團隊在組織各個方面持續提高效率方面表現出色。他們的集體努力有助於抵消通貨膨脹和電動車產品開發支出的邊際影響，以及電動車和我們服務的其他市場需求低於預期的影響。

Next free cash flow was a strong $104 million, down $30 million from this time last year, the difference only due to the timing of payments between the two periods, moving to the upper right, on this slide under the key highlights, consistent with the past several quarters, company-wide efficiency improvements by the Dana team continue to drive incremental profit.

接下來的自由現金流為強勁的1.04 億美元，比去年同期減少了3,000 萬美元，差異僅是由於兩個時期之間的付款時間造成的，移至右上角，在這張幻燈片的關鍵亮點下方，與過去幾個季度，德納團隊在全公司範圍內提高效率，並繼續推動利潤增量。

As stated on the page, Dana achieved an extremely strong 73% conversion rate on traditional organic sales in the first half of the year this performance is well above our historical conversion and positions the company on a trajectory to achieve our full year targets, moving to the center right of the slide, we saw overall organic sales growth through the first half of the year as demand levels remain relatively stable across most of our end markets.

正如該頁面所述，德納在今年上半年實現了傳統有機銷售 73% 的極高轉換率，這一業績遠高於我們的歷史轉換率，並使公司走上實現全年目標的軌道，轉向在幻燈片的中右部分，我們看到上半年整體有機銷售成長，因為我們大多數終端市場的需求水準保持相對穩定。

As I mentioned, we are seeing some weakening demand in EV's as well as some in our traditional ICE products and programs, particularly in our off-highway end markets. Lastly, with ongoing efficiency improvements and our capital investment improvements, Dana's financial outlook remains on track for the rest of the year.

正如我所提到的，我們看到電動車以及傳統內燃機產品和專案的需求減弱，特別是在我們的非公路終端市場。最後，隨著效率的不斷提高和資本投資的改善，德納今年剩餘時間的財務前景仍保持在正軌上。

While we're slightly adjusting our sales range, primarily due to the pullback in EV, we are maintaining our profit estimate while again raising our full free cash flow outlook this quarter to approximately $100 million at the midpoint of the range. This is a 33% increase over our prior guidance.

雖然我們稍微調整我們的銷售範圍（主要是由於電動車的回調），但我們維持我們的利潤預期，同時再次將本季度的全部自由現金流前景提高至該範圍中點的約 1 億美元。這比我們之前的指導增加了 33%。

Tim will walk you through this and other financial details and updates later in the presentation. Please turn with me to page five for the outlook on the business environment for this year. As we stated last quarter, Dana's overall business environment continues to improve compared to last year, driven by a few key factors which I will provide greater detail.

蒂姆將在稍後的演示中向您介紹這一細節以及其他財務細節和更新。今年的營商環境展望請隨我翻到第五頁。正如我們上季度所說，在幾個關鍵因素的推動下，德納的整體商業環境與去年相比持續改善，我將提供更多細節。

Beginning on the left side of the slide, we continue to see improved company-wide efficiency supported by greater stability in customer production which has resulted in lower production cost, improved productivity and greater efficiency across all areas of the enterprise. Moving next to the supply chain, net commodity are still expected to be a headwind to sales and profit for the remaining of the year, though steel prices are projected to be mostly flat compared with 2023.

從幻燈片左側開始，我們繼續看到，在客戶生產更穩定的支援下，整個公司的效率不斷提高，從而降低了生產成本，提高了生產力，並提高了企業所有領域的效率。就供應鏈而言，儘管鋼材價格預計與 2023 年相比基本持平，但預計淨商品仍將成為今年剩餘時間銷售和利潤的阻力。

As input costs have declined, we see a reversal of commodity recoveries with customers driving a sales and margin headwind. Lastly, on the left-hand side of the page, end market demand is showing some pockets of weakness, but Dana continues to benefit from numerous refreshed conquests and new business that is rolling on this year, which is a contributor to our profitable growth.

隨著投入成本下降，我們看到商品復甦逆轉，客戶推動銷售和利潤逆風。最後，在頁面左側，終端市場需求顯示出一些疲軟，但德納繼續受益於今年推出的眾多新的征服和新業務，這為我們的盈利增長做出了貢獻。

We also continue to benefit from market share gains in our commercial vehicle group that are partially offsetting the softening demand for commercial EV's. Moving to the right of the page, let's take a look at our end market outlook where we are seeing agriculture down compared to last year.

我們也持續受惠於商用車集團市場份額的成長，這在一定程度上抵消了商用電動車需求疲軟的影響。轉到頁面右側，讓我們來看看我們的最終市場前景，我們看到農業與去年相比有所下降。

Demand for construction and mining equipment should continue trending somewhat flat compared to 2023, though we remain cautious on this market and will continue to monitor demand levels. We also see light vehicle full frame truck production volumes remaining relatively stable for key recently refreshed vehicle platforms. However, dealer inventory levels have risen over the quarter.

與 2023 年相比，建築和採礦設備的需求將繼續呈平穩趨勢，但我們對該市場仍持謹慎態度，並將繼續監控需求水準。我們也看到最近更新的主要車輛平台的輕型汽車全框架卡車產量保持相對穩定。然而，本季經銷商庫存水準有所上升。

After several years of growth, we are seeing the market for heavy vehicles lower compared with last year, which is expected, and there may be a slight softening in production in the back half of the year. Moving to the bottom of the slide the key takeaways that we are witnessing across our industry show that cost inflation is somewhat moderating. Despite labor costs increasing globally.

經過幾年的成長，我們看到重型汽車市場與去年相比有所下降，這是預料之中的，下半年產量可能會略有疲軟。轉到幻燈片的底部，我們在整個行業中看到的關鍵要點表明，成本通膨有所緩和。儘管全球勞動成本不斷增加。

OEM production schedules continue to stabilize, which provides a stable operating environment to achieve production efficiency improvements. Lastly, the light vehicle market overall is navigating a period of demand fluctuation for current EV programs. As we move through the second quarter, we saw demand for commercial EV's temper due to the lower investments by fleets and operators as they work to integrate EV trucks into their vehicle portfolios.

OEM生產進度持續穩定，這為實現生產效率提升提供了穩定的營運環境。最後，輕型汽車市場總體上正在經歷當前電動車專案的需求波動期。隨著第二季的到來，我們看到了對商用電動車的需求下降，因為車隊和營運商致力於將電動車整合到他們的車輛組合中，從而減少了投資。

Given the continued investment in EV development by truck manufacturers and ongoing robust quoting activity for future models, we believe this is more of a balance in market demand. We anticipate these nascent technologies, such as fully integrated e-Axles and hybrid systems, will drive future adoption.

鑑於卡車製造商對電動車開發的持續投資以及未來車型持續強勁的報價活動，我們認為這更多的是市場需求的平衡。我們預計這些新興技術，例如完全整合的電子車橋和混合動力系統，將推動未來的採用。

Shifting gears on the next page as I often do, I'll share some current examples with you of how balanced products and systems approach is enabling Dana to win new traditional, hybrid and EV business across all of the markets we serve. Slide Six is a great visual representation that illustrates Dana's ability to deliver class leading solutions to a variety of applications for ICE, hybrid and electric vehicle manufacturers across all mobility markets.

正如我經常做的那樣，我將在下一頁與您分享一些當前的範例，說明平衡的產品和系統方法如何幫助德納在我們服務的所有市場中贏得新的傳統、混合動力和電動車業務。幻燈片六是一個出色的視覺展示，展示了德納為所有移動市場的內燃機、混合動力和電動車製造商的各種應用提供一流解決方案的能力。

To compartmentalize this better, we've added three icons to the top of the page, one for ICE, one for hybrid, and one for EV. Beginning on the left of the page, we start with an ICE vehicle. We're excited to share that the all-new DAF ICE medium duty truck featuring Dana's front and rear axles is launching in Europe in the third quarter of this year.

為了更好地劃分這一點，我們在頁面頂部添加了三個圖標，一個用於 ICE，一個用於混合動力，一個用於 EV。從頁面左側開始，我們從一輛 ICE 車輛開始。我們很高興告訴大家，採用德納前後橋的全新 DAF ICE 中型卡車將於今年第三季在歐洲推出。

This is conquest business and will be one of our larger commercial vehicle programs in Europe. Our class leading Spicer axles are specifically designed for medium and heavy-duty markets. They provide a lightweight solution that helps to reduce installation and life cycle cost while improving fuel cost, reliability and vehicle maneuverability.

這是征服業務，並將成為我們在歐洲較大的商用車項目之一。我們領先的 Spicer 車軸專為中型和重型市場而設計。它們提供的輕量化解決方案有助於降低安裝和生命週期成本，同時提高燃料成本、可靠性和車輛可操作性。

Moving to the center of the page, we are providing you with an example of a new hybrid vehicle application. Dana will be supplying our Spicer Electric Torque-Hubs and on engine generators for use on hybrid boom lifts for multiple major off-highway OEMs. Today, Scissor Lifts and Booms offer true hybrid operation to increase operating flexibility.

前往頁面中心，我們為您提供了一個新型混合動力汽車應用程式的範例。德納將為多家主要非公路原始設備製造商提供用於混合動臂式高空作業平台的 Spicer 電動扭力輪轂和引擎發電機。如今，剪叉式高空作業平台和動臂可提供真正的混合操作，以提高操作靈活性。

Hybrid models employ a combination of two different power sources, a small diesel engine with a generator and a battery drive. These units significantly increase rental flexibility and boost machine utilization by offering the same productive operation as a diesel rough terrain unit, with the added benefit of offering extended operating intervals indoors and under battery power.

混合動力車型採用兩種不同動力來源的組合：帶有發電機的小型柴油引擎和電池驅動器。這些設備可提供與柴油崎嶇地形設備相同的生產操作，從而顯著提高租賃靈活性並提高機器利用率，並具有在室內和電池供電下提供更長操作間隔的額外優勢。

In addition, their cleaner and quieter performance creates new opportunities for use in work environments where noise and emissions must be restricted, such as some urban and residential spaces. The focus on cleaner, more efficient construction vehicles has become increasingly important for our customers, and our hybrid solutions portfolio is leading the way in accelerating decarbonization across the off-highway industry.

此外，它們更清潔、更安靜的性能為在必須限制噪音和排放的工作環境（例如一些城市和住宅空間）中使用創造了新的機會。對我們的客戶來說，專注於更清潔、更有效率的工程車輛變得越來越重要，我們的混合動力解決方案組合在加速非公路產業脫碳方面處於領先地位。

Completing the third part of our balanced portfolio. On the far right of the page, we're excited to share a new pure electric vehicle that Dana will be supplying our Spicer eS9000r e-Axle for the Bollinger B4 light duty truck. The Bollinger B4 is an all new, all electric truck going into production this year. While this vehicle may look similar to a larger heavy-duty vehicle, this lighter duty truck has a gross vehicle weight rating of [15,500 pounds,] which is comparable to a passenger van or a heavy-duty pickup.

完成我們平衡投資組合的第三部分。在頁面的最右側，我們很高興與大家分享一款新型純電動車，德納將為 Bollinger B4 輕型卡車提供 Spicer eS9000r e-Axle。Bollinger B4 是一款全新的全電動卡車，將於今年投入生產。雖然該車輛看起來與較大的重型車輛相似，但該輕型卡車的車輛總重額定值為 [15,500 磅]，與客貨車或重型皮卡相當。

This vehicle will be unique in that it will be designed to be custom configured by fleets to fit their exact duty cycle needs, making the transition to electric as seamless as possible with minimal downtime. Our eS9000r e-Axle is based on our proven Spicer rear drive axle platforms engineered for medium-duty truck and bus applications.

該車輛的獨特之處在於，它將由車隊進行定製配置，以滿足其確切的工作週期需求，從而盡可能無縫地過渡到電動車，並最大限度地減少停機時間。我們的 eS9000r e-Axle 基於我們經過驗證的 Spicer 後驅動橋平台，專為中型卡車和巴士應用而設計。

We've engineered this ePropulsion solution with the exceptional flexibility so it can be incorporated into a wide spectrum of vehicles, reducing driveline complexity. In fact, we were the first to market with an original generation of the e-Axle classification in North America more than four years ago.

我們設計的 ePropulsion 解決方案具有卓越的靈活性，因此可以融入各種車輛中，從而降低傳動系統的複雜性。事實上，四年多前，我們是第一個在北美推出第一代 e-Axle 類別的公司。

These three examples showcase the breadth of Dana's highly efficient propulsion and energy management solutions that are being used across all mobility markets around the world. It's not a stretch to say that our products can be found in nearly every type of vehicle that moves from light and medium trucks and SUV's to commercial vehicles, agricultural machinery such as tractors, construction equipment, golf carts, and much more.

這三個例子展示了德納高效推進和能源管理解決方案的廣泛性，這些解決方案正在全球所有行動市場中使用。毫不誇張地說，我們的產品幾乎應用於所有類型的車輛中，從輕型和中型卡車和 SUV 到商用車、拖拉機等農業機械、建築設備、高爾夫球車等等。

Our full suite of ICE, hybrid and electric vehicle capabilities enables us to meet the propulsion needs of all of our customers, regardless of demand fluctuations in any particular market. Turn with me to slide seven, where I will update you regarding the drivers of our significant profit expansion so far this year.

我們的全套內燃機、混合動力和電動車功能使我們能夠滿足所有客戶的推進需求，無論任何特定市場的需求波動如何。請跟我一起翻到第七張投影片，我將在其中向您介紹今年迄今利潤大幅成長的驅動因素。

Beginning on the left side of the page Dana's end-to-end execution is a direct result of the efforts of our talented world class team of associates. As one Dana we are successfully driving sustained profit expansion despite flat year-over-year sales driven by currency impacts, lower commodity recoveries, as well as some pullback in demand for EV and other traditional markets we serve.

從頁面左側開始，Dana 的端到端執行是我們才華橫溢的世界級員工團隊努力的直接結果。作為德納的一員，儘管由於匯率影響、大宗商品復甦放緩以及電動汽車和我們服務的其他傳統市場的需求有所回落，銷售額同比持平，但我們仍成功推動了利潤的持續擴張。

Dana's core business priorities encompass sustained financial improvements and commercial effectiveness and growth, which are driven across the company through standardized processes and systems.

德納的核心業務重點包括持續的財務改進以及商業效率和成長，這是透過標準化流程和系統在整個公司範圍內推動的。

Our operating priorities center on operational excellence and execution that is laser focused on cost reduction and disciplined asset management, which is achieved by leveraging cross company synergies through our global centers of excellence to ensure that we run the business as efficiently as possible.

我們的營運重點以卓越營運和執行為中心，專注於降低成本和嚴格的資產管理，這是透過我們的全球卓越中心利用跨公司協同效應來實現的，以確保我們盡可能高效地經營業務。

All of this is driving significant profit expansion as illustrated on the right side of the page. By way of example, as we finished up the first half of this year and you look back over the last few years, compare the first half of 2024 to 2022 and 2023. You can see adjusted EBITDA has increased by $135 million, or 41%.

所有這些都推動了利潤的大幅增長，如頁面右側所示。舉例來說，當我們結束今年上半年時，您回顧過去幾年，將 2024 年上半年與 2022 年和 2023 年進行比較。您可以看到調整後的 EBITDA 增加了 1.35 億美元，即 41%。

This was only made possible because of the outstanding execution and collaboration of our global team. And finally, it's important to note that it goes beyond the outstanding execution taking place across the company. What truly sets Dana apart is our ability to provide customers spanning all mobility markets with a balanced portfolio that is energy source agnostic.

這一切之所以成為可能，是因為我們全球團隊的出色執行力和協作。最後，值得注意的是，這不僅是整個公司出色的執行力。真正使德納與眾不同的是我們能夠為所有行動市場的客戶提供與能源無關的平衡產品組合。

What I mean by that is, as we presented on the previous slide, we can deliver class leading solutions that support internal combustion, hybrid and EV manufacturers across all mobility markets. The result is our end-to-end business execution is successfully driving towards long term profit targets and a strong financial outlook.

我的意思是，正如我們在上一張幻燈片中介紹的那樣，我們可以提供一流的解決方案，為所有移動市場的內燃機、混合動力和電動車製造商提供支援。結果是我們的端到端業務執行成功推動了長期利潤目標和強勁的財務前景。

Thank you for your time today. Now I'd like to turn it over to Tim who will walk you through the financials.

感謝您今天抽出時間。現在我想把它交給蒂姆，他將帶您了解財務狀況。

Thank you, Jim, and good morning, please turn with me now to slide nine for a review of our second quarter and Year-to-date results for 2024. Beginning with the second quarter, sales were $2.74 billion higher, or, I'm sorry, just $2.74 billion, slightly below last year's due to currency translation and lower commodity recoveries offsetting higher demand and backlog.

謝謝吉姆，早安，現在請跟我一起翻到第九張投影片，回顧我們的第二季和 2024 年年初至今的業績。從第二季開始，銷售額增加了 27.4 億美元，或者，抱歉，只有 27.4 億美元，略低於去年，這是由於貨幣換算和商品復甦較低抵消了較高的需求和積壓造成的。

Year-to-date, sales were $5.47 billion, an increase of $81 million. Adjusted EBITDA was $244 million in the second quarter for a profit margin of 8.9%, a 10 basis points improvement. Year-to-date, adjusted EBITDA was $467 million. That is $20 million higher than the previous year for a profit margin of 8.5%, 20 basis points better than last year.

年初至今，銷售額為 54.7 億美元，增加了 8,100 萬美元。第二季調整後 EBITDA 為 2.44 億美元，利潤率為 8.9%，提高了 10 個基點。年初至今，調整後 EBITDA 為 4.67 億美元。這比去年增加了 2,000 萬美元，利潤率為 8.5%，比去年提高了 20 個基點。

Profit improvement this year is primarily due to better efficiencies across the company, aided by more stable customer order patterns. Net income attributable Dana was $16 million for the second quarter, about $14 million lower than last year, primarily due to restructuring actions. Full year net income was $19 million compared to net income of $58 million last year.

今年利潤的改善主要歸功於整個公司效率的提高，以及更穩定的客戶訂單模式的幫助。第二季歸屬於 Dana 的淨利潤為 1,600 萬美元，比去年同期減少約 1,400 萬美元，這主要是由於重組行動。全年淨利為 1,900 萬美元，去年淨利為 5,800 萬美元。

The difference is primarily due to the planned divestiture of our non-core hydraulics business from within our off-highway segment that we discussed last quarter. This business is classified as held for sale and a $29 million loss was recognized in the first quarter to adjust the carrying value of the net assets to fair value less estimated selling costs.

差異主要是由於我們上季度討論的計劃從非公路部門剝離非核心液壓業務。該業務被歸類為持有待售業務，第一季確認了 2,900 萬美元的虧損，將淨資產帳面價值調整為公允價值減去估計銷售成本。

This transaction also triggered $7 million tax valuation allowance in Europe and finally operating cash flow was $215 million for the quarter and $113 million for the full year. Operating cash flow was $27 million higher this year than the year prior in the year-to-date period for 2023.

這項交易還觸發了歐洲 700 萬美元的稅收估價補貼，最終該季度營運現金流為 2.15 億美元，全年營運現金流為 1.13 億美元。2023 年年初至今，營運現金流比前一年增加 2,700 萬美元。

Please turn with me now to slide ten for the driver of the sales and profit change for the second quarter of 2024. Beginning on the left, traditional organic sales were $19 million higher, driven by increased demand for newly refreshed vehicle programs.

現在請跟我一起翻到投影片 10，了解 2024 年第二季銷售額和利潤變化的驅動因素。從左邊開始，由於對新更新的車輛項目的需求增加，傳統的有機銷售額增加了 1900 萬美元。

Market share gains in commercial vehicle partly offset by lower demand in off-highway end markets. Adjusted EBITDA on organic sales was $40 million. This very strong incremental margin was due to our improved cost efficiencies across the entire company, which generated 150 basis point margin improvement.

商用車市場份額的成長部分被非公路終端市場需求的下降所抵消。有機銷售的調整後 EBITDA 為 4000 萬美元。這一非常強勁的利潤增量歸功於我們整個公司成本效率的提高，利潤率提高了 150 個基點。

EV organic sales growth was $11 million, driven primarily by an increase in sales of battery cooling and hybrid vehicle products, offset by lower demand in our commercial vehicle and off-highway segments. Adjusted EBITDA was $19 million lower and 80 basis point margin headwind.

電動車有機銷售額成長 1,100 萬美元，主要是由於電池冷卻和混合動力汽車產品銷量的成長，但被商用車和非公路領域需求的下降所抵消。調整後 EBITDA 減少 1,900 萬美元，利潤率下降 80 個基點。

Continued engineering investment for EV programs drove the lower profit, offsetting the positive contribution from higher sales. Foreign currency translation decreased sales by $22 million, primarily driven by the lower value of the Euro and the Brazilian Real compared to the US Dollar. Profit was lower by $3 million with no margin impact.

電動車專案的持續工程投資導致利潤下降，抵消了銷售成長的正面貢獻。外幣換算使銷售額減少了 2,200 萬美元，主要是由於歐元和巴西雷亞爾相對於美元的價值較低。利潤減少了 300 萬美元，但利潤率沒有受到影響。

Finally, due to falling commodity prices, commodity cost recovery in the second quarter was $16 million lower than last year. The profit benefit of the lower commodity prices was offset by the timing of cost mechanisms within the commodity recovery agreements with our customers, resulting in a profit being lower by $17 million, a 60 basis point decrement to margin.

最後，由於大宗商品價格下跌，第二季的大宗商品成本回收比去年減少了1,600萬美元。商品價格下跌的利潤收益被與客戶簽訂的商品回收協議中的成本機制時間表所抵消，導致利潤減少 1700 萬美元，利潤率減少 60 個基點。

Next, I'll turn to slide eleven for the details of our first quarter free cash flow. Free cash flow was $104 million in the second quarter, which was $30 million lower than last year's second quarter. Lower net interest due to timing of interest payments mostly offset higher taxes driven by payment timing and regional mix.

接下來，我將翻到第十一張投影片，以了解我們第一季自由現金流的詳細資訊。第二季自由現金流為1.04億美元，比去年第二季減少了3,000萬美元。利息支付時間造成的淨利息下降大部分抵消了支付時間和地區組合帶來的較高稅收。

Working capital requirements were $38 million higher than last year, primarily due to the timing of various payments. Finally, capital spending to support new business backlog was $11 million lower than last year, driven by a more normalized launch cadence this year and the timing of investment for future EV programs.

營運資金需求比去年增加了 3800 萬美元，主要是由於各種付款的時間表。最後，由於今年推出節奏更加正常化以及未來電動車專案的投資時機，支持新業務積壓的資本支出比去年減少了 1,100 萬美元。

Please turn with me now to slide twelve for our upgraded guidance for 2024. We continue to expect all of our financial guidance measures to be improved compared to last year. However, there are a few updates to our outlook.

現在請跟我一起翻到第 12 張投影片，了解我們升級後的 2024 年指南。我們繼續預計所有財務指導措施將比去年有所改善。然而，我們的展望有一些更新。

First, we are trimming our sales outlook for this year due to the lower end of our previous range to about $7 billion or $10.7 billion at the midpoint of the updated range, primarily due to slower growth in demand for electric vehicles.

首先，由於電動車需求成長放緩，我們將今年的銷售前景下調至先前範圍的下限至約 70 億美元或更新範圍中點的 107 億美元。

Second, we are maintaining our profit guidance of $925 million at the midpoint of the range. This is about $80 million higher than last year. Our implied profit margin has increased by 10 basis points at the midpoint of the 8.3% to 8.8% range. This revised margin is a 60 basis points improvement over last year.

其次，我們將 9.25 億美元的利潤指引維持在區間的中點。這比去年增加了約 8000 萬美元。我們的隱含利潤率增加了 10 個基點，位於 8.3% 至 8.8% 範圍的中點。修正後的利潤率比去年提高了 60 個基點。

Third, we are again this quarter increasing our guidance for full year free cash flow by $25 million to $100 million for the full year, or $125 million higher than last year. Our GAAP earnings per share guidance remains unchanged at $0.60 per share and finally, we are reinstating our guidance for diluted adjusted EPS to provide a comparable measure to prior periods, primarily due to the strategic actions this year.

第三，本季我們再次將全年自由現金流指引提高了 2,500 萬美元至 1 億美元，比去年增加了 1.25 億美元。我們的 GAAP 每股盈餘指引保持不變，仍為每股 0.60 美元，最後，我們將恢復稀釋調整後每股盈餘指引，以提供與前期可比的衡量標準，這主要是由於今年的策略行動。

We expect diluted adjusted EPS to be in the range of $0.80 to $1.30 or $1.05 at the midpoint. Note that with this measure we are adjusting only one-time items and amortization of intangible assets in line with our adjusted EBITDA measure.

我們預計稀釋後調整後每股收益將在 0.80 美元至 1.30 美元之間，中間為 1.05 美元。請注意，透過此指標，我們僅根據調整後的 EBITDA 指標調整一次性項目和無形資產攤提。

Please turn with me now to Slide 13 where I will highlight the drivers of the full year expected sales and profit changes compared to last year. Beginning with organic growth for 2024, we now expect about $230 million in additional sales from traditional products through new business, moderate market growth and market share gains.

現在請跟我一起看投影片 13，我將重點介紹全年預期銷售額和利潤與去年相比變化的驅動因素。從 2024 年的有機成長開始，我們現在預計，透過新業務、適度的市場成長和市場份額的成長，傳統產品的銷售額將增加約 2.3 億美元。

This is slightly lower than our previous outlook due to continued weakness in our heavy vehicle markets. Adjusted EBITDA increase on traditional organic sales expected to be approximately $145 million. The higher profit and margin increase of about 120 basis points is a continuation of the company wide efficiencies and cost savings actions.

由於重型車輛市場持續疲軟，這略低於我們先前的預期。傳統有機銷售的調整後 EBITDA 增幅預計約為 1.45 億美元。利潤和利潤率成長約 120 個基點，是公司範圍內提高效率和節省成本行動的延續。

As I mentioned, we are lowering our incremental sales expectation for EV products this year due to the industry wide slowdown in demand, we now expect about $65 million in incremental EV sales. The EV business continues to contribute positive profit and we have reduced our engineering and other expenses and are maintaining our expected EV adjusted EBITDA to be about $20 million headwind.

正如我所提到的，由於整個行業的需求放緩，我們正在降低今年對電動車產品的增量銷售預期，我們現在預計電動車銷量的增量約為 6500 萬美元。電動車業務繼續貢獻正利潤，我們減少了工程和其他費用，並將電動車調整後 EBITDA 的預期維持在 2000 萬美元左右。

The divestiture is expected to close in the second half of this year and were lower sales by $40 million with no profit impact. Foreign currency translation on sales is expected to be slightly more modest headwind of approximately $45 million with a profit impact of $5 million. Finally, our commodity outlook is expected to be a headwind to sales of about $65 million due to lower recoveries driven by falling steel and other commodity prices.

此次剝離預計將於今年下半年完成，銷售額將減少 4,000 萬美元，但不會影響利潤。預計銷售額的外幣換算阻力將略為溫和，約 4,500 萬美元，對利潤的影響為 500 萬美元。最後，由於鋼鐵和其他大宗商品價格下跌導致復甦放緩，我們的商品前景預計將阻礙約 6,500 萬美元的銷售額。

We expect a $40 million profit headwind due to the true up of pricing governed by our two-way commodity recovery mechanisms with our customers. Lastly, please turn with me to slide 14 for our outlook on free cash flow for 2024. We anticipate full year free cash flow to now be about $100 million at the midpoint of the guidance range.

由於我們與客戶的雙向商品回收機制所控制的定價的真正上漲，我們預計將出現 4000 萬美元的利潤逆風。最後，請跟我一起翻到投影片 14，了解我們對 2024 年自由現金流的展望。我們預計全年自由現金流目前約為 1 億美元，處於指導範圍的中點。

This is a $25 million improvement over a prior outlook given driven by lower capital spending. We expect about $80 million of higher free cash flow from increased profits on higher sales. Net interest will be about $35 million higher due to higher interest rates and payment timing due to the refinancing that occurred in 2023.

由於資本支出減少，這比先前的預期提高了 2500 萬美元。我們預計銷售額增加帶來的利潤增加將帶來約 8,000 萬美元的自由現金流增加。由於 2023 年發生的再融資導致利率和付款時間增加，淨利息將增加約 3,500 萬美元。

Working capital is expected to be a use of about $50 million or $35 million better than last year. And capital spending to support our sales growth and technology is expected to be about $425 million this year, which is $75 million lower than last year as we flex spending to match customer program timing.

預計營運資金使用量將比去年好 5,000 萬美元或 3,500 萬美元左右。今年支持我們的銷售成長和技術的資本支出預計約為 4.25 億美元，比去年減少 7500 萬美元，因為我們靈活支出以匹配客戶計劃的時間表。

Thank you for joining us today. I will now turn the call back over to Regina and we'll take your questions.

感謝您今天加入我們。我現在將把電話轉回給里賈納，我們將回答您的問題。

Colin Langan with Wells Fargo.

富國銀行的科林·蘭根。

Great. Thanks for taking my questions. When I look at the lower sales guidance of $200 million at the midpoint. Almost all of it $175 million I think is from EV's. One, what are you seeing on EV's?

偉大的。感謝您回答我的問題。當我查看中點 2 億美元的較低銷售指引時。我認為這 1.75 億美元幾乎全部來自電動車。一，您對電動車有何看法？

But two, the recent S&P forecasts had some pretty big cuts in the second half of the year to some of your larger customers, was that already baked into your outlook? Why? Kind of expected a little bit of a hit from some of those reductions. Why hasn't that impacted you?

但第二，最近的標準普爾預測在今年下半年對您的一些大客戶進行了相當大的下調，這是否已經融入您的前景中？為什麼？預計其中一些削減會帶來一些影響。為什麼這沒有影響到你？

Hey Colin, this is Tim. Yeah, so we had already been expecting some of that slowdown in the back half of the year and had already built that in to our original forecast. So that's already in there and then there is some mix change in there as well.

嘿科林，這是提姆。是的，所以我們已經預計到今年下半年會出現一些放緩，並且已經將其納入我們最初的預測中。所以這已經在那裡了，然後那裡也有一些混合變化。

And on the EV side, I mean, is this program getting pushed into next year? I mean, any color there?

在電動車方面，我的意思是，該計劃是否會推遲到明年？我的意思是，有什麼顏色嗎？

Yeah. So I think we're seeing lower volumes across much of it. Obviously, a lot of it coming out of the CV space a little bit elsewhere. But we do think that some of that will start to return. But in the EV space, it's not really program specific as much as it is customer specific. So, as we see that the customers start to rebalance, to demand, I think we'll see some of that flatten out.

是的。所以我認為我們看到大部分的銷量都在下降。顯然，很多內容都來自履歷領域的其他地方。但我們確實認為其中一些將開始回歸。但在電動車領域，它並不是真正特定於程序，而是特定於客戶。因此，當我們看到客戶開始重新平衡需求時，我認為我們會看到其中一些趨於平緩。

Got it. If I look at the implied first half to second half, based on the midpoint of your new guidance, it implies higher margins on, it looks like lower sales first half to second half. What kind of gets the margins that usually work that way?

知道了。如果我看一下隱含的上半年到下半年，根據新指引的中點，它意味著更高的利潤率，看起來上半年到下半年的銷售額較低。通常以這種方式獲得什麼樣的利潤？

What gets margins higher in the second half, even if sales aren't up?

即使銷售量沒有成長，下半年的利潤率會更高嗎？

Yeah. So, if you just look at the high, we're down about $250 million, half to half, and only losing about $10 million of that in EBITDA. That would normally convert, if you just think about it, at something around 50, that 40 difference, 20 of it is really around the EV.

是的。因此，如果你只看最高點，我們會減少約 2.5 億美元，一半到一半，而 EBITDA 只損失約 1000 萬美元。如果你想一想，這通常會轉換為 50 左右，即 40 的差異，其中 20 實際上是在 EV 左右。

So, you'll see that if you look at the difference in EV. So, we are flexing a lot of those costs from first half to second half on the EV, the balance is really additional improvement on the cost structure and the efficiencies across the company.

因此，如果您觀察 EV 的差異，您會發現這一點。因此，從上半年到下半年，我們在電動車上調整了許多成本，平衡實際上是對整個公司成本結構和效率的進一步改善。

So, and if you think about, you know, think about our last year's second half, we showed, you know, our ability to really drive efficiencies when we lost those sales and had, you know, something around $50 million in the back half of last year that were really efficiency improvements.

所以，如果你想想，你知道，想想我們去年下半年，我們展示了，你知道，當我們失去這些銷售並且下半年有大約 5000 萬美元的收入時，我們真正提高效率的能力去年，這確實是效率的提升。

So, we feel good about being able to deliver. I'll continue to be able to deliver our commitment on the $925 million, even despite the lower sales.

因此，我們對能夠交付感到很高興。儘管銷售額有所下降，我仍將繼續履行我們對 9.25 億美元的承諾。

Got it. Thanks for the call.

知道了。感謝您的來電。

Tom Narayan with RBC.

加拿大皇家銀行 (RBC) 的湯姆·納拉揚 (Tom Narayan)。

Hi. Yeah, thanks for taking the questions. You know, one last week, there were two, two OEMs, Stellantis and Ford, with pretty elevated dealer inventory levels. One of them, Stellantis, actually called out explicitly how they're going to cut, like, 100,000 units of production, I think, in H2 alone. I know you just mentioned that you had already been incorporating a lot of this in your guidance, but it seems like a moving target.

你好。是的，感謝您提出問題。你知道，上週有兩家、兩家原始設備製造商（Stellantis 和福特）的經銷商庫存量相當高。其中之一，Stellantis，實際上明確表示他們將如何削減，例如，我認為僅在下半年就削減 100,000 單位的產量。我知道您剛才提到您已經在指導中納入了很多內容，但這似乎是一個不斷變化的目標。

Just as early, as recently as last week, I was just curious like, it seems like OEM customers, I know both of them are customers of yours, are using production cuts as a way to deal with this inventory situation, to what extent are you concerned about this?

早在上週，我就很好奇，好像OEM客戶，我知道他們都是你們的客戶，都在用減產的方式來應對這種庫存情況，減產到什麼程度？

Not just in H2 '24, but perhaps even prospectively into 2025.

不僅是在 24 年下半年，甚至可能持續到 2025 年。

Yeah. So I'm not going to give any color on '25 as it's still quite a ways away, when we look at the back half of the year, we had some of this in there as I mentioned before, we also have mix, obviously between segments and even between programs.

是的。所以我不會對 25 年給出任何顏色，因為它還有很長的路要走，當我們回顧今年下半年時，我們有一些這樣的東西，正如我之前提到的，我們也有混合，顯然段之間，甚至程式之間。

And then obviously we're very light truck focused and usually, and obviously very program focused on the vehicle side. So, we think where we have the forecast now is in line with what we're hearing from the customers but obviously, as they continue to adjust, we'll make those changes as needed.

顯然，我們非常專注於輕型卡車，通常，顯然非常注重車輛方面的計劃。因此，我們認為我們現在的預測與我們從客戶那裡聽到的結果一致，但顯然，隨著他們繼續調整，我們將根據需要進行這些更改。

Okay. And then if I just squeeze in one, your prepared comments that you mentioned share gains in commercial vehicle offsetting market declines. Just curious as to maybe where this is happening, the share gains in particular? Thanks.

好的。然後，如果我只是插一句，您準備好的評論，您提到商用車的份額增長抵消了市場下跌。只是好奇這種情況發生在哪裡，尤其是股票報酬？謝謝。

Good morning. Thanks for the question. Thanks for attending. This is Jim. There's no long-winded answer to it. It's across the world. It's global. We're just continuing to execute cost, quality, delivery, you name it. And fortunately, we're appreciated that our customers are recognizing and supporting us.

早安.謝謝你的提問。感謝您的參加。這是吉姆。對此沒有冗長的答案。它遍布世界各地。這是全球性的。我們只是繼續執行成本、品質、交付，凡是你能想到的。幸運的是，我們很高興客戶對我們的認可和支持。

Okay. Thank you.

好的。謝謝。

Dan Levy with Barclays.

巴克萊銀行的丹·利維。

Hi. Good morning. Thanks for taking the questions. I want to start with a question on light vehicle. I think this is like the best margin that you put up in something like the last three years. And obviously we see a pretty good EBITDA on, on sort of modest revenue increase. So maybe you can just give us a sense of the underlying dynamics in the LVD margins. How much of this is just inflation unwind, and then maybe you can give us a flavor for just what the trajectory is?

你好。早安.感謝您提出問題。我想先問一個關於輕型車輛的問題。我認為這就像你在過去三年中取得的最好利潤。顯然，我們看到了相當不錯的 EBITDA，收入略有成長。因此，也許您可以讓我們了解 LVD 利潤率的潛在動態。其中有多少只是通貨膨脹的緩解，然後也許你可以讓我們了解軌跡是什麼？

This was once an 11% 12% percent EBITDA margin business, I recognize. Maybe it doesn't go back up to that level, given some of the inflation dynamics, but maybe you can give us a sense of sort of where this business is going forward, because it still seems like even with these production adjustments, the core volumes on these platforms is still quite robust super duty, just added capacity.

我承認，這曾經是 11% 12% EBITDA 利潤率的業務。考慮到一些通膨動態，也許它不會回到那個水平，但也許你可以讓我們了解這項業務的未來發展方向，因為即使進行了這些生產調整，核心似乎仍然如此。相當強勁，只是增加了容量。

So maybe you can give us a sense of the trajectory there, please?

那麼也許您可以讓我們了解那裡的發展軌跡，好嗎？

Yeah. So obviously we're pleased with where we're at in terms of the trajectory to move the light vehicle margins back to where they really need to be. I think obviously the customer running better helps with efficiency, but also, you know, the drive within the organization, on across the board efficiency.

是的。顯然，我們對將輕型車輛利潤率恢復到真正需要的水平的軌跡感到滿意。我認為顯然，客戶更好的營運有助於提高效率，而且，你知道，組織內部的驅動力也有助於提高整體效率。

So, whether it be direct material cost, conversion costs within the plants or really just the general cost structure from a fixed perspective in the business is really getting reflected, but that those plants continue to run better and better, you know, day in and day out, and we see that continuing.

因此，無論是直接材料成本、工廠內的轉換成本，還是從業務中固定角度來看的一般成本結構，都確實得到了反映，但這些工廠日復一日地繼續運作得越來越好。 ，我們看到這種情況仍在繼續。

You mentioned inflation. Inflation is still with us, albeit it slowed down, so we left less to have to offset or try to go get from the customer. So that's certainly a benefit versus what we had over the last few years.

你提到了通貨膨脹。通貨膨脹仍然伴隨著我們，儘管它已經放緩，所以我們留下的東西越來越少，必須抵消或試圖從客戶那裡獲取。因此，與過去幾年相比，這無疑是一個優勢。

On your last question. Yeah. We need to get these margins and are working to get these margins back closer to where they are. Will they be back there? We'll have to continue to push. But certainly, our view is this business can be and will be a double-digit profit generator and be able to return, have the acceptable returns for the capital we've invested.

關於你的最後一個問題。是的。我們需要獲得這些利潤，並正在努力讓這些利潤回到更接近的水平。他們會回到那裡嗎？我們必須繼續推動。但當然，我們的觀點是，這項業務可以而且將會成為兩位數的利潤創造者，並且能夠回報，為我們投資的資本帶來可接受的回報。

Just on the inflation, is there can you contextualize how much maybe low hanging fruit is there that that can still come out of the system or how much of the sort of production inefficiencies which drag to margins and past how much more improvement you could see on that front?

就通貨膨脹而言，您是否可以了解系統中仍然可以實現多少容易實現的目標，或者有多少生產效率低下會拖累利潤率，以及您可以看到多少改進那個前面？

Yeah, no, I think there's, I don't want to get into specifics of how we run the plants, but certainly we think there's additional amounts in both of those to be able to go get. And look, the idea of taking costs out of the plants, that's part of the DNA, and we're really just flexing that muscle that we have now that we've got better production schedule. And that's what you're seeing flow through.

是的，不，我認為有，我不想詳細說明我們如何運作這些工廠，但我們當然認為這兩個工廠都可以獲得額外的金額。看，降低工廠成本的想法是 DNA 的一部分，我們實際上只是在展示我們現在擁有的力量，因為我們已經有了更好的生產計劃。這就是您所看到的流程。

Great. Thank you. As a follow up, Jim, I'm wondering if you could just give us an update on the EV strategy. And I know this is a question that's come up on past calls, but this is such a fluid environment, and we're seeing automakers continuing to change plans, modify launch schedules, obviously on the light vehicle side, but even on the commercial side as well, it seems like there's some shifts there.

偉大的。謝謝。作為後續行動，吉姆，我想知道您是否能為我們提供有關電動車策略的最新資訊。我知道這是一個在過去的電話中提出的問題，但這是一個如此多變的環境，我們看到汽車製造商繼續改變計劃，修改發佈時間表，顯然是在輕型汽車方面，但即使是在商業方面而且，似乎也有一些轉變。

So maybe you can just give us a sense of how, if at all, the strategy on EV is being modified or is it still continuing to stay the path, continuing to maintain the investment?

因此，也許您可以讓我們了解電動車策略正在如何（如果有的話）正在修改，或者是否仍然繼續走這條路，繼續維持投資？

Dan, thanks for the question. That's a lot to unpack, but I'll do my best. I think we're all challenged with it, right, in terms of figuring that out, not the strategy so much about what's going on, but I guess to get some momentum around the answer would be, everyone is, I would say, pushing out and reducing down in some form or fashion on EV for all the reasons we know, infrastructure to whatever it might be.

丹，謝謝你的提問。有很多東西需要解開，但我會盡力而為。我認為我們都面臨著挑戰​​，對吧，在弄清楚這一點方面，而不是關於正在發生的事情的策略，但我想圍繞答案獲得一些動力，我想說，每個人都在推動我們所知的所有原因，以某種形式或方式減少電動車的排放，無論基礎設施是什麼。

As it relates to us the best thing I could do for you is to paint a visual. We've created a very unique strategy at Dana. From the very beginning. We've been very rigid with it. And that is you take the example of the Bollinger wind that we announced today, and you look at the components that are in there.

因為它與我們有關，我能為你做的最好的事情就是繪製視覺效果。我們在德納制定了一個非常獨特的策略。從一開始。我們對此一直非常嚴格。以我們今天宣布的布林線風為例，看看其中的組成部分。

You have a rigid eBeam Axle, you have a motor, you have an inverter, you have the software, you have the controls within that. You have the thermal management that supports it from our power technologies business, so on and so forth. That all of that, at a minimum, on a human capital level, fungible at a maximum.

你有一個剛性的電子束軸，你有一個電機，你有一個逆變器，你有一個軟體，你有其中的控制裝置。我們的電力技術業務部門提供熱管理支持，等等。所有這一切，至少在人力資本層面上，在最大程度上是可替代的。

Many times, the capital assets themselves in the plants is fungible across business units, etcetera, etcetera. And so, for us, our strategy doesn't need to change because that product, those products, I should say, can go up and down the river, I like to call it in the off-highway, commercial vehicle, the light vehicle at different diameters, at different torque, at different things.

很多時候，工廠中的資本資產本身可以在業務部門等之間互換。因此，對我們來說，我們的策略不需要改變，因為我應該說，這些產品可以沿著河流上下流動，我喜歡稱之為非公路、商用車、輕型車輛在不同的直徑、不同的扭矩、不同的情況下。

So, we don't have to change our strategy because one market, or whatever the case may be, may have more delay, more pullback, whatever it might be. So, we're positioned. If it was different, if this pull back and change what happened four years ago, three years ago, I mean, you'd have to think about an abrupt change.

因此，我們不必改變我們的策略，因為一個市場，或者無論什麼情況，可能會出現更多的延遲、更多的回調，無論是什麼。所以，我們已經定位好了。如果情況不同，如果這回撤並改變四年前、三年前發生的事情，我的意思是，你必須考慮突然的變化。

But there's, I can't see a world, personally speaking, I can't see a world that customers that start with light vehicles, take an example that their people are going to, consumers are going to go into dealerships and not expect to have the optionality around buying an EV, a hybrid or an internal combustion engine for any time in the near future.

但是，我看不到一個世界，就我個人而言，我看不到一個世界，客戶從輕型汽車開始，以他們的員工為例，消費者將進入經銷商而不是期望在不久的將來，您可以隨時選擇購買電動車、油電混合車或內燃機汽車。

The same thing goes for commercial vehicle. If you think about the most important, probably the most important end market relative to total cost of ownership, if you're an OEM, I'm not here to speak on behalf of them.

商用車也是如此。如果您考慮相對於總擁有成本最重要的、可能是最重要的終端市場，如果您是 OEM，那麼我不會代表他們發言。

They speak to me. I'm kind of relaying it. You don't give people the optionality and a total cost of ownership depending on the vehicle choice, things, good things happen or bad things happen to good people.

他們跟我說話。我有點轉發它。你不會給人們選擇權和總擁有成本，這取決於車輛的選擇、事情、好事發生或壞事發生在好人身上。

So, you're always going to have those type of scenarios. We're just using our capital, both human and equipment capital, to support all of our customers. We'll get a good return on it. Capital is blind. It doesn't matter if it's EV capital, if it's ICE capital or hybrid. You just deploy the capital, you make a return on investment, your company grows, you continue to, you continue to expand margin.

所以，你總是會遇到這些類型的場景。我們只是利用我們的資本（包括人力資本和設備資本）來支持我們所有的客戶。我們會得到很好的回報。資本是盲目的。無論是電動車資本、ICE 資本或混合動力資本，都沒關係。你只需配置資本，你就能獲得投資回報，你的公司就會成長，你會繼續，你會繼續擴大利潤。

I hope that's not too much of an answer, but that's how we're thinking about it.

我希望這不是一個太大的答案，但這就是我們的想法。

Great. Thank you.

偉大的。謝謝。

Joe Spak with UBS.

瑞銀集團的喬·斯帕克。

Thanks. Good morning, everyone. I want to get back to the guidance and maybe think about it a little bit differently. If we look at the sales level on traditional organic, you did bring that down a little bit for the year.

謝謝。大家早安。我想回到指導上來，也許可以稍微不同地思考一下。如果我們看看傳統有機產品的銷售水平，你會發現今年的銷售水平確實有所下降。

And I know you spoke to some tougher end markets, but if you look, it still assumes over $135 million of positive in the second half, which is 60% of that total gain you're looking for. And we know some of those end markets are tougher and some of the key platforms look to be maybe down half, over half. So, can you just help us understand what's really driving that and maybe even some indication by segment if possible?

我知道您談到了一些更為嚴峻的終端市場，但如果您仔細觀察，您會發現下半年的收益仍將超過 1.35 億美元，這是您所尋求的總收益的 60%。我們知道其中一些終端市場更加艱難，一些關鍵平台看起來可能會下降一半，甚至超過一半。那麼，您能否幫助我們了解真正推動這一趨勢的因素，如果可能的話，甚至可以按細分市場提供一些指示？

Yeah, I think. Don't forget our second half last year, especially in light vehicle, was significantly impacted by the UAW strike. So, we're going to get that volume back, you know, and we can talk about sort of where the customers are on production plans, but, you know, our largest programs were all impacted significantly by that strike.

是的，我想。不要忘記我們去年下半年，尤其是輕型車，受到了 UAW 罷工的嚴重影響。因此，我們將恢復該產量，你知道，我們可以討論客戶的生產計劃，但是，你知道，我們最大的項目都受到了這次罷工的嚴重影響。

And that's back. We also had some launches last year that in the back half that that should be at better run rates. So those are obviously all helping. We also have, you know, parts of the business that, that are outside of North America from a mix perspective that continue to support the ICE sales growth.

那又回來了。去年我們也推出了一些產品，下半年應該會有更好的運行率。所以這些顯然都有幫助。你知道，從混合角度來看，我們還有北美以外的部分業務繼續支持 ICE 銷售成長。

And then of course we've got some headwinds starting to peek through on the off-highway side, but that's generally why we still are able to see that growth from a nice perspective in the back half of the year.

當然，我們在非公路方面開始遇到一些阻力，但這通常就是為什麼我們仍然能夠在今年下半年從一個好的角度看到這種增長。

Okay. And then I guess similarly, just on the, on the margin side or the cost side, I guess the 73% conversion on traditional growth in the first half, the guidance does imply that steps down to something in the mid-fifties in the back half, but obviously still really strong.

好的。然後我想類似地，只是在利潤方面或成本方面，我認為上半年傳統增長的轉換率為 73%，該指導確實意味著下半年會下降到 50 年代中期的水平一半，但顯然仍然很強。

But I'm just wondering, and I know you talked about prudent investments, capital efficiency, but is there more that can be done, do you think, within the organization, as we think beyond the back half, how should we, do we return to more normal contribution margins? I guess, beyond some of the comps that are impacting the figures this year?

但我只是想知道，我知道您談到了審慎投資、資本效率，但是您認為組織內部還有更多可以做的事情嗎？到更正常的邊際貢獻？我想，除了一些影響今年數據的比較之外？

Hey, Joe, good morning. This is Jim. Let me dive into that one a little bit, try to get through a question. Can more be done? Absolutely more can be done. Manufacturing, if you're worth your salt, is all about sustain and improve, sustain and improve, build processes and systems that give you a platform to build off of.

嘿，喬，早安。這是吉姆。讓我深入探討這個問題，試著解決一個問題。還可以做得更多嗎？絕對可以做更多的事情。如果您稱職的話，製造就是維持和改進、維持和改進、建構流程和系統，為您提供一個建置平台。

And that's what we've been doing here. We've taken kind of the long view to build just an incredible company. So, first of all, on what's, kind of what's within your controls, we fully expect to continue to improve on all of the drivers that we refer to as across company efficiencies.

這就是我們一直在這裡所做的事情。我們著眼長遠，致力於打造一家令人難以置信的公司。因此，首先，在您可以控制的範圍內，我們完全希望繼續改善我們所說的整個公司效率的所有驅動因素。

In addition, to remind you in the overall profitability of the business too, this the business, you know it as well as I do relative to fixed contracts and especially light vehicle. But all, all suppliers got hit with fixed contracts that you have to deal with, et cetera, et cetera.

此外，還要提醒您的是，在業務的整體盈利能力方面，您和我一樣了解這項業務，相對於固定合同，尤其是輕型車輛。但所有的供應商都受到了你必須處理的固定合約的影響，等等。

As those continue to build out, we are still in many, many cases supplier of choice and we're going to continue to reap the benefit of getting new roll-on programs. In terms of the trajectory. That's the way you think? That's the way I think about it.

隨著這些項目的不斷發展，在許多情況下我們仍然是首選的供應商，我們將繼續從新的滾動項目中獲益。從軌跡來看。你是這麼想的嗎？我就是這麼想的。

It's just sustain and improve both on new growth, profitable growth, utilize the existing capital you have. We don't have to go build out a platform electrification capital like we would have had to over the years. Not to say there's not some, but it's more of an ambient capital level like the companies ran for decades and we just continue to gain margin off of that moving forward and more importantly, cash flow?

它只是維持和改善新的成長、獲利成長，利用你擁有的現有資本。我們不必像多年來那樣建立一個電氣化平台資本。並不是說沒有，但更多的是像公司運行了幾十年那樣的環境資本水平，我們只是繼續從前進中獲得利潤，更重要的是，現金流？

Okay, maybe one quick one just can, can you confirm that you'd be able to support super duty production in Ontario?

好吧，也許快速一點就可以了，您能確認您能夠支持安大略省的超級生產嗎？

Okay, thank you.

好的，謝謝。

James Picariello with BNP Paribas.

詹姆斯·皮卡里洛 (James Picariello) 與法國巴黎銀行 (BNP Paribas) 合作。

Hey guys, this is Jake on for James. First, I was hoping you give us an update on the Hydro Quebec TM foreput. Just some color on the timing and impact and what the cash payment to Hydro Quebec could be? Thank you.

嘿夥計們，這是詹姆斯的傑克。首先，我希望您向我們介紹魁北克水電公司 TM 預測的最新情況。只是關於時間和影響以及向魁北克水電公司支付的現金可能是多少？謝謝。

Sure. This is Tim. How you doing, Jake? Sure. I mean, obviously we're in the process today. The contract, the shareholders agreement has a specific process that we're working through. In terms of timing, I think certainly it'll continue to take some time.

當然。這是蒂姆。你好嗎，傑克？當然。我的意思是，顯然我們今天正在這個過程中。合約、股東協議都有我們正在處理的特定流程。就時間安排而言，我認為肯定還需要一些時間。

We'll update as we know more, but certainly it's going to be late this year or early next. In terms of our view, we've had the disclosure out there for some time. In terms of what we believe our view of the value the put is, and that's currently in there, it's somewhere in the neighborhood of 200, which is what we currently have it on the books for.

我們會在了解更多資訊後進行更新，但肯定會在今年年底或明年初進行。就我們的觀點而言，我們已經披露這一消息有一段時間了。就我們對看跌期權價值的看法而言，目前的價值約為 200，這就是我們目前帳面上的價值。

And we haven't changed that view since we started down this process, although we are early in the process with Hydro Quebec.

儘管我們與魁北克水電公司的合作處於早期階段，但自從我們開始這個過程以來，我們一直沒有改變這個觀點。

Great thanks, Tim. And then could you guys just give us an outlook on the off-highway market? Ag especially appears to be materially turning over to the negative. So what's your assumption there? Thank you.

非常感謝，提姆。那你們能為我們介紹一下非公路市場的前景嗎？尤其是 Ag 似乎正在大幅轉向負面。那你的假設是什麼呢？謝謝。

Yeah. So, correct. We still see Ag being down, obviously farm incomes down. You can see you've heard the, the news coming out of John Deere, which is one of our larger customers, especially in Ag. So, yeah, we continue to monitor that.

是的。所以，正確。我們仍然看到農業收入下降，顯然農業收入下降。您可以看到，您已經聽到了來自約翰迪爾的消息，約翰迪爾是我們的大客戶之一，尤其是在農業領域。所以，是的，我們將繼續監控這一情況。

Obviously, we don't play in every Ag market, so they're all reacting a bit differently. But our current view, which is a down Ag market, is built into the rest of your forecast.

顯然，我們並不涉足每個農業市場，因此他們的反應都略有不同。但我們目前的觀點是農業市場下跌，這已納入您的其餘預測。

Thank you.

謝謝。

Okay, just some concluding comments. This is Jim, again. First of all, as I always like to do, thank you very much for your time and attendance today and privilege of your time. Not a lot to conclude, I thought the questions kind of surrounded it well today, but I would just say personalizing it a little bit.

好吧，只是一些結論性的評論。這又是吉姆。首先，正如我一直喜歡做的那樣，非常感謝您今天抽出寶貴的時間出席，並感謝您的寶貴時間。沒有太多結論，我認為今天的問題很好地圍繞著它，但我只想說稍微個性化它。

This is my over 35 years in the business, almost 18 as a CEO. One thing that has never changed that is there's no to win, there are no shortcut shortcuts for mobility suppliers. You have to execute on cost, quality, delivery, technology and innovation, operational excellence and customer satisfaction never changes, right?

這是我在這個行業工作超過 35 年的時間，擔任執行長已經快 18 年了。從未改變的一件事是，對於出行供應商來說，沒有勝利的餘地，沒有捷徑可走。您必須執行成本、品質、交付、技術和創新、卓越營運和客戶滿意度永遠不會改變，對吧？

No one would have imagined the destruction that would have occurred, that occurred coming out of the COVID years and hyperinflation. And it's just a clock. You can't speed up in terms of getting the company back to where it was.

沒有人會想像到新冠疫情和惡性通貨膨脹會造成如此嚴重的破壞。這只是一個時鐘。你無法加速讓公司回到原來的狀態。

As you can see, obviously through a 73% conversion on incremental sales, or the methodical incremental sales on various platforms, across end markets, across, across propulsion systems, companies running at extremely high level and continuing to prove every day.

正如您所看到的，顯然，透過增量銷售的73% 轉換率，或在各種平台上、跨終端市場、跨推進系統的有條不紊的增量銷售，公司以極高的水平運行並每天都在繼續證明。

In the long haul, the markets will definitely support the small caps. They're going to, the money's going to come back our direction because we're just going to continue from that for the rest of supply base.

從長遠來看，市場肯定會支持小型股。他們將會，資金將回到我們的方向，因為我們將繼續為其餘的供應基地提供服務。

Thanks again for your time and attention. Talk to you later.

再次感謝您的時間和關注。我們回聊。

Thank you all for joining today's call. You may now disconnect.

感謝大家參加今天的電話會議。您現在可以斷開連線。